SoundCloud on sale, reported by Sky News yesterday. The global music streaming giant, is gearing up for a significant sale later this year. Backed by Raine Group and Temasek Holdings, the potential payday is eye-watering, with estimates exceeding $1 billion. Dive into the details of this anticipated sale and the remarkable journey that has led SoundCloud to this moment.
Established in 2007
SoundCloud has become a crucial platform for over 40 million artists, offering them the tools to shape their careers by providing a digital haven to showcase their creations. The platform boasts a staggering 320 million tracks released, emphasizing its profound impact on the music industry.
Turnaround success
Under the leadership of CEO Eliah Seton, SoundCloud has experienced a remarkable turnaround in recent years. The company, once on the verge of collapse, has accelerated its progress, attracting significant investments from Raine and Temasek in 2017.
Recent financial reports reveal a positive trajectory for SoundCloud. With a potential sale on the horizon, the company’s value has soared, fueled by a $170 million majority-takeover by Raine and Temasek in 2017. Additional investments, including $75 million from SiriusXM in February 2020, have further solidified SoundCloud’s financial position.
To ensure financial health and pursue profitability, SoundCloud made strategic decisions, including an 8% global workforce reduction in May last year. Eliah Seton emphasized the necessity of these measures to secure the company’s future for both artists and fans.
Business segments
SoundCloud’s contemporary business model is divided into two segments: its subscriptions business, encompassing subscription payments and ad revenue, and its ‘creator’ business, involving fees paid by artists for distribution, tools, and services to market and monetize their music.
In conclusion
SoundCloud, the platform’s impending sale underscores its journey from a struggling enterprise to a billion-dollar contender in the competitive music streaming landscape. Stay tuned as SoundCloud hits the market, reshaping the dynamics of the industry.
